Venmo is a new app on iPhones and Androids that allow you to link a credit card to your phone, and transfer money right there to your friends accounts. You can simply send them money on your phone, and it will take it out of your account and put it in theirs. They also created a feature called "trust" that allows you to take money from friends accounts without permission.
So where does this fit into the restaurant industry? A restaurant in New York City called the Simple Kitchen is using this new Venmo app and even the trust feature. Regulars who eat at the restaurant frequently are getting up and leaving without asking for the bill after, "trusting" the restaurant to take the money out of their account.
I think that the use of this app in the restaurant industry can gain support by customers if Venmo became commonly used. However, I do not think that this will ever happen since it is hard to trust anyone with access to your bank account these days. If people were not so decieving and people were able to trust, I think that this would help restaurants since time is a major issue. People do not always have time to sit down, eat, and wait for the check, resorting to more fast food. However, by not having to wait for the check, people could take time off their visit and sit at restaurants more often.
http://bits.blogs.nytimes.com/2010/20/25/venmo-wants-its-users-to-trust-each-other/?scp=3&sq=restaurant%20industry&st=cse
Tuesday, October 26, 2010
Tuesday, October 19, 2010
New Hotels in NYC
According to a WSJ article posted today, hotels are being built in many unconventional locations within New York City. This is because, "New York is a very, very hot market and everybody wants to be there," according to Jan Freitag, vice president of Smith Travel Research Inc. in Hendersonville, Tenn., a hotel-data provider. As of now, there are 19 new hotels under construction in the outer boroughs (Staten Island, Long Island, Brooklyn, etc.) It should also be quoted that "the hotel wave is coming more than a decade after the 1998 opening of the New York Marriott at the Brooklyn Bridge, Brooklyn's first new luxury hotel in a half century."
In June, a 321-room, full service Sheraton Brooklyn New York hotel opened. Aloft Brooklyn, considered a luxury hotel, will be opened in January around the same area. These are operated by Starwood Hotels & Resorts Worldwide. There will also be openings of full service hotels by 2012 near the new Nets arena in Brooklyn.
Limited-service hotels are also trying to make their way into the city. Comfort Inn and Holiday Inn Express are building hotels near subway and railroad stations, as well as near hospitals and airports. Intercontinental Corp., a big name in limited-service hotels, is opening 14 new hotels within the 5 boroughs over the next few years.
It should also be noted that "Companies say hotels are proliferating in the outer boroughs—and close-in suburbs, too—because of rising demand from business and leisure travelers for affordable lodging outside Manhattan, as well as for meeting and banquet facilities" An example is the Days Inn in Long Island City. This hotel is about 15 minutes from Midtown Manhattan as well as less than a half-hour subway ride from downtown Flushing, CitiField and the USTA National Tennis Center. However, this hotel is much less expensive than a hotel within Manhattan.
I think this is a great opportunity for the hotel companies that take it. It makes more sense to build hotels outside of NYC for the people who want to visit the city but cannot afford to have a hotel for 6 nights in the middle of Manhattan. It is also smarter than building more hotels in NJ because the price of hotels in NJ are very high, because of its proximity to NYC. Also, the cost of traveling back and forth from NJ to NYC everyday will cost more than staying in a hotel in one of the five boroughs, excluding Manhattan.
http://online.wsj.com/article/SB10001424052748704300604575554193765198142.html
In June, a 321-room, full service Sheraton Brooklyn New York hotel opened. Aloft Brooklyn, considered a luxury hotel, will be opened in January around the same area. These are operated by Starwood Hotels & Resorts Worldwide. There will also be openings of full service hotels by 2012 near the new Nets arena in Brooklyn.
Limited-service hotels are also trying to make their way into the city. Comfort Inn and Holiday Inn Express are building hotels near subway and railroad stations, as well as near hospitals and airports. Intercontinental Corp., a big name in limited-service hotels, is opening 14 new hotels within the 5 boroughs over the next few years.
It should also be noted that "Companies say hotels are proliferating in the outer boroughs—and close-in suburbs, too—because of rising demand from business and leisure travelers for affordable lodging outside Manhattan, as well as for meeting and banquet facilities" An example is the Days Inn in Long Island City. This hotel is about 15 minutes from Midtown Manhattan as well as less than a half-hour subway ride from downtown Flushing, CitiField and the USTA National Tennis Center. However, this hotel is much less expensive than a hotel within Manhattan.
I think this is a great opportunity for the hotel companies that take it. It makes more sense to build hotels outside of NYC for the people who want to visit the city but cannot afford to have a hotel for 6 nights in the middle of Manhattan. It is also smarter than building more hotels in NJ because the price of hotels in NJ are very high, because of its proximity to NYC. Also, the cost of traveling back and forth from NJ to NYC everyday will cost more than staying in a hotel in one of the five boroughs, excluding Manhattan.
http://online.wsj.com/article/SB10001424052748704300604575554193765198142.html
The Big City's Big Change
The newest addition to New York City, The Setai Fifth Avenue is, according the Wall Street Journal, "hotel and condo at East 36th Street that's scheduled to open for hotel guests on Nov. 1" (The Wall Street Journal Online). Even though the building is adjacent to the Empire State Building, and located on the intersection of posh Fifth Avenuel; it is an area typically occupied by tourists. That is not necessarily negative, however, the chairman Davide Bizzi, of "Italy's Bizzi & Partners Development"- believe this is, "a location that should improve...[the Setai Fifth Avenue is]...helping with that" (The Wall Street Journal Online).
Thus, New York City brokers believe that the contracts between "$2,000 and $2,300" (The Wall Street Journal Online) a square foot is overpriced for what the land is worth. Prudential broker Douglas Elliman estimated the value to be "$1,600 a square foot" (The Wall Street Journal Online), and that would be the price that he would bring customers over to see the condos. This means that he feels a condominium that is 10,000 square feet should be around $16 million, not $20 to $23 million. However it does not matter what seems like a fair price, but what consumers are willing to pay. According to the article, of the 184 condominiums, " Nearly half the Setai's condos are in contract, most of them all-cash deals to overseas buyers..." (The Wall Street Journal Online). Even though, Bizzi & Partners Development might not be doing the ethical business contract, in the end they need to make a profit, to pay off the debt, and sell these condos.
First off, as previously mentioned, I am disgusted by the unethical behavior of overpricing these condominiums and likely the hotel rooms, and how it is allowed. This will change the area's atmosphere to make the everyday tourists not feel welcomed. Another problem I have is that, Bizzi and his executives assume this will do well. They assume that restaurants and shops will want top open up because this intricate building is located in an area that has not been taken over by the rich? I think that is absurd. What if there is another swine flu, and the foreigners decide to terminate their contracts? During the swine flu outbreak many foreigners feared coming to our country, and this could easily happen again. Then Bizzi will be stuck in a large amount of debt.
http://online.wsj.com/article/SB10001424052748703673604575550463496233810.html
Thus, New York City brokers believe that the contracts between "$2,000 and $2,300" (The Wall Street Journal Online) a square foot is overpriced for what the land is worth. Prudential broker Douglas Elliman estimated the value to be "$1,600 a square foot" (The Wall Street Journal Online), and that would be the price that he would bring customers over to see the condos. This means that he feels a condominium that is 10,000 square feet should be around $16 million, not $20 to $23 million. However it does not matter what seems like a fair price, but what consumers are willing to pay. According to the article, of the 184 condominiums, " Nearly half the Setai's condos are in contract, most of them all-cash deals to overseas buyers..." (The Wall Street Journal Online). Even though, Bizzi & Partners Development might not be doing the ethical business contract, in the end they need to make a profit, to pay off the debt, and sell these condos.
First off, as previously mentioned, I am disgusted by the unethical behavior of overpricing these condominiums and likely the hotel rooms, and how it is allowed. This will change the area's atmosphere to make the everyday tourists not feel welcomed. Another problem I have is that, Bizzi and his executives assume this will do well. They assume that restaurants and shops will want top open up because this intricate building is located in an area that has not been taken over by the rich? I think that is absurd. What if there is another swine flu, and the foreigners decide to terminate their contracts? During the swine flu outbreak many foreigners feared coming to our country, and this could easily happen again. Then Bizzi will be stuck in a large amount of debt.
http://online.wsj.com/article/SB10001424052748703673604575550463496233810.html
Las Vegas and the Hotel Industry
Although most hotels have been seeing a turn around from this recession, Las Vegas has failed to see the end of it. This has been the worst economic fall for Las Vegas since the creation of casinos in Nevada in the 1940s.
Although economists are still hopeful that casino revenue will bounce back soon, they doubt that it will be able to make up for the fall of the construction industry which is a huge part of Las Vegas' success.
Unemployment in Las Vegas is at about 14%, whereas 10 years ago, it was at just about 4%. The Plaza Hotel and Casino has just announced that they are planning on laying off 400 workers and closing off parts of the hotel and casino for renovation, a common trend in hotels these days. (Nagourney)
Gaming revenues have been declining for the past three years and are continuing to. This is a result of the decreased recreational travel and gambling during recessions. Economists also believe the baby boomer generation is less likely to gamble because of belief that there will be a lack of retirement funds. (Nagourney)
It is tough to say that the hotel and casino industry in Las Vegas will pick up as soon as the economy does because people have not been saving much money during the recession. We have seen turnarounds in the hotel industry caused by business travel. This may be a large reason why things have not been looking any better in Las Vegas. Las Vegas is a huge recreational vacation and tourist spot, rather than business. However, I do think things will slowly begin to turn around as people's expectations for the economy go up.
http://www.nytimes.com/2010/10/03/us/03vegas.html?_r=1&scp=7&sq=hotel%20industry&st=cse
Although economists are still hopeful that casino revenue will bounce back soon, they doubt that it will be able to make up for the fall of the construction industry which is a huge part of Las Vegas' success.
Unemployment in Las Vegas is at about 14%, whereas 10 years ago, it was at just about 4%. The Plaza Hotel and Casino has just announced that they are planning on laying off 400 workers and closing off parts of the hotel and casino for renovation, a common trend in hotels these days. (Nagourney)
Gaming revenues have been declining for the past three years and are continuing to. This is a result of the decreased recreational travel and gambling during recessions. Economists also believe the baby boomer generation is less likely to gamble because of belief that there will be a lack of retirement funds. (Nagourney)
It is tough to say that the hotel and casino industry in Las Vegas will pick up as soon as the economy does because people have not been saving much money during the recession. We have seen turnarounds in the hotel industry caused by business travel. This may be a large reason why things have not been looking any better in Las Vegas. Las Vegas is a huge recreational vacation and tourist spot, rather than business. However, I do think things will slowly begin to turn around as people's expectations for the economy go up.
http://www.nytimes.com/2010/10/03/us/03vegas.html?_r=1&scp=7&sq=hotel%20industry&st=cse
Wednesday, October 13, 2010
Passing the Test
There has been a revolution. A revolution in the amount of knowledge a consumer is exposed to in New York City. This is due to the fact that, "the city [has] adopted a new system requiring restaurants to post large, brightly colored letter grades rating their cleanliness and safety... (Wall Street Journal Online October 13,2010). The restaurant owners have been waiting impatiently to "defend their kitchens" because they do not want their businesses receiving less than an A rating.
The ratings of A, B, or C are based on how many violations an inspector from the "Department of Health and Mental Hygiene" sees when inspecting a restaurant or food chain. There is a long, tedious process that the food vendors must go through if one, "fails to receive an A, 13 violation points or fewer, on its first inspection, it does not receive a grade until at least one other inspection is made." So, it is possible to receive an A, but very few do, which is causing the lines at the Department of Health and Mental Hygiene to be very long. Thus, to make the process increase in speed, there has been an increase in "hearing rooms and [the Department of Health and Mental Hygiene has been] encouraging restaurants to accept settlements in place of hearings." This means that they can get two inspections, and receive a low score and keep fighting for a high score, or the restaurant owners can pay penalty fines.
People used to have to blindly guess whether a restaurant was sanitary. A well known tip included, checking if the bathroom was clean before eating. This is because it is much easier to clean a bathroom then a kitchen. If a bathroom is dirty, the kitchen will most likely be worse off. However, it is much better now that people do not have to guess the cleanliness of his or her food when eating in New York City; since it has already been investigated by the Department of Health and Mental Hygiene. Even though this is a positive effect for the consumer, the restaurants are going to be negatively affected. The ones that have poor reports for "cleanliness and safety" are going to end up closing since consumers are knowledgable and will choose another restaurant or food chain. Some restaurants might pay the fines, but not be able to have customers continue to come, with the knowledge of unsanitary areas. If consumers are choosing other food chains and restaurants, than the one's that have poor ratings will inevitably shut down. Although, being a frugal college student might make the rating not important to the consumer.
http://www.nytimes.com/2010/10/14/nyregion/14inspect.html?ref=dining&pagewanted=print
The ratings of A, B, or C are based on how many violations an inspector from the "Department of Health and Mental Hygiene" sees when inspecting a restaurant or food chain. There is a long, tedious process that the food vendors must go through if one, "fails to receive an A, 13 violation points or fewer, on its first inspection, it does not receive a grade until at least one other inspection is made." So, it is possible to receive an A, but very few do, which is causing the lines at the Department of Health and Mental Hygiene to be very long. Thus, to make the process increase in speed, there has been an increase in "hearing rooms and [the Department of Health and Mental Hygiene has been] encouraging restaurants to accept settlements in place of hearings." This means that they can get two inspections, and receive a low score and keep fighting for a high score, or the restaurant owners can pay penalty fines.
People used to have to blindly guess whether a restaurant was sanitary. A well known tip included, checking if the bathroom was clean before eating. This is because it is much easier to clean a bathroom then a kitchen. If a bathroom is dirty, the kitchen will most likely be worse off. However, it is much better now that people do not have to guess the cleanliness of his or her food when eating in New York City; since it has already been investigated by the Department of Health and Mental Hygiene. Even though this is a positive effect for the consumer, the restaurants are going to be negatively affected. The ones that have poor reports for "cleanliness and safety" are going to end up closing since consumers are knowledgable and will choose another restaurant or food chain. Some restaurants might pay the fines, but not be able to have customers continue to come, with the knowledge of unsanitary areas. If consumers are choosing other food chains and restaurants, than the one's that have poor ratings will inevitably shut down. Although, being a frugal college student might make the rating not important to the consumer.
http://www.nytimes.com/2010/10/14/nyregion/14inspect.html?ref=dining&pagewanted=print
Putting the Wine Bar to Work
A new urban winery has taken over what used to be a bar and art venue in the heart of Williamsburg. New and ambitious winemakers will also be able to try their hand at winemaking. "Customers will take part in the entire eight- to 24-month-long process starting with crushing and fermenting the grapes all the way to hand bottling the wine" (Avila). The winery expects to churn out 100 barrels of wine in its first season.
"It's an addicting process," said the 27-year-old proprietor, Brian Leventhal. The new Brooklyn Winery, an 8,000-square-foot space on a residential block, will feature a wine bar and a venue to host events (Avila). "Brooklyn Winery is among several urban wineries that have opened up around the country in recent years, including City Winery on Manhattan's West Side, which also offers the chance to make wine" (Avila). Technology allows winemakers to customize the blend of their wine and design their own labels. This technology eases the process of making different kinds of fine wines and labeling the bottles which leads to a higher growth and development of this industry.
Much of the manufacturing done in this industry is done domestically. "Grapes mostly come from Sonoma, California, and also from vineyards in the North Fork of Long Island and the Finger Lakes of Upstate New York" (Avila). Companies lower their production costs by not getting their components internationally. Since the products are domestically imported, the price of production costs is lower.
http://online.wsj.com/article/SB10001424052748704763904575550544033710092.html?KEYWORDS=restaurant
Results from Study On Restaurant Workers
A recent study found that 60% of workers in the restaurant industry continue to go to work when they are sick. The reasons behind this? Restaurant workers do not get paid for sick time and they receive no insurance. 90% of workers interviewed do not recieve health insurance.(Severson)
This study was conducted with more 4,000 surverys and hundreds of interviews. This was conducted to increase the awareness of the conditions of restaurant workers, and to continue to put weight on this issue.
The Restaurant Opportunities Center conducted this survey. This organization was created after September 11. It's initial foundation was to help unemployed restaurant workers. However, it has evolved into much more. It has been involved in bringing charged to restaurants for not complying with the wage and hour laws, and bringing charges against restaurant owners who have practiced racial discrimination.
I think this organization is doing a great job fighting for restaurant workers rights. The issue of wages and hours has been ongoing, as I have posted several blogs about it, and the new statistics from this survey is going to help new laws go into effect.
http://dinersjournal.blogs.nytimes.com/2010/09/30/restaurant-workers-dont-stay-home-when-sick-study-finds/?scp=1&sq=restaurant%20industry&st=cse
This study was conducted with more 4,000 surverys and hundreds of interviews. This was conducted to increase the awareness of the conditions of restaurant workers, and to continue to put weight on this issue.
The Restaurant Opportunities Center conducted this survey. This organization was created after September 11. It's initial foundation was to help unemployed restaurant workers. However, it has evolved into much more. It has been involved in bringing charged to restaurants for not complying with the wage and hour laws, and bringing charges against restaurant owners who have practiced racial discrimination.
I think this organization is doing a great job fighting for restaurant workers rights. The issue of wages and hours has been ongoing, as I have posted several blogs about it, and the new statistics from this survey is going to help new laws go into effect.
http://dinersjournal.blogs.nytimes.com/2010/09/30/restaurant-workers-dont-stay-home-when-sick-study-finds/?scp=1&sq=restaurant%20industry&st=cse
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